SANTA CLARA -- The Denver Broncos moved up five spots Thursday night in a trade with the Seattle Seahawks to select Memphis quarterback Paxton Lynch with the No. 26 overall pick.
The decision to draft Lynch appears to end the Broncos’ interest in acquiring quarterback Colin Kaepernick from the 49ers in a trade.
Kaepernick and the Broncos were unable to come to a new contract, which prevented the trade, sources told CSNBayArea.com. If the Kaepernick’s agents, Scott Smith and Jason Bernstein, had worked out a new contract with Denver, the trade with the 49ers would have fallen into place, according to the sources.
The Broncos offered Kaepernick a reduced contract of $7 million in base salary both of the next two seasons, CSN Bay Area’s Mindi Bach reported recently. Kaepernick was willing to accept a pay cut, but not the $12.4 million cut in salary over the next two years.
Kaepernick is scheduled to make $11.9 million in fully guaranteed base salary this season. He is now expected to remain with the 49ers and compete with Blaine Gabbert for the starting job.
The 49ers gave Kaepernick's agents permission to seek a trade. Kaepernick reportedly met twice with Broncos general manager John Elway while he was rehabbing from surgeries to his left shoulder, right thumb and left knee in Vail, Colorado.